In March, 2016 the Treasury released K8.1 billion to facilitate government operations, to service debt, and finance development projects.
In the period under review, the Treasury raised K6.87 billion in revenue and grants while expenditure totalled K8.1 billion. However, due to high expenditure requirements, an overall deficit of K1.25 billion was recorded. The deficit was mainly financed from a bridge loan of K1.1 billion.
Total domestic revenues collected totalled K6.81 billion of which tax revenues amounted to K1.99 billion and non-tax revenues K4.82 billion. Collections under non-tax revenue were above target collection by 0.3 percent due to, among other initiatives, increased collections from road tolling managed by the National Road Fund Agency. This is commendable progress and the Treasury wishes to take this opportunity to urge motorists, both local and foreign, to continue complying with road tolling regulations.
The government further received K57.91 million project support under the Ministry of Agriculture and Livestock and Ministry of Local Government and Housing.
Of the K8.1 billion disbursed, K3.74 billion went towards debt service of which K741.3 million was for interest while a total of K3.0 billion was released for principal repayments. Domestic interest payments accounted for K412 million while the balance was on external interest payments.
The Treasury also disbursed K492.6 million for goods and services, key of which K88 million went towards procurement of drugs, and K100 million for preparations for the 2016 General Elections.
K1.2 billion was released towards fuel subsidy payments and K285.3 million for electricity subsidy payments. Although these payments have a huge bearing on availability of resources for other developmental programmes, they are critical in ensuring that our economy remains functional and productive.
From the March 2016 disbursements, the Farmer Input Support Programme [FISP] was funded K130 million while an additional amount of K33.8 million was given to the Food Reserve Agency (FRA) to facilitate payment of works certificates for rehabilitation of storage sheds and other crop purchase related expenditure.
Further, an amount of K61.6 million went towards the Local Government Equalization Fund (LGEF) and K42.9 million for social benefits of which the social cash transfer programme received K21.7 million.
The Treasury released K136 million for health and education infrastructure projects while K69.8 million was disbursed to road sector programmes.
The Ministry of Finance will continue to implement measures that will facilitate the achievement of development objectives of the 2016 budget within the established fiscal and treasury management standards.
The Ministry of Finance will endeavor to heighten the monitoring and evaluation of budget and economic affairs so that national development programmes continue to produce results that are beneficial to the people of Zambia, and reassuring to the regional and international investment community.
Issued By:
Chileshe Kandeta
Public Relations Officer
MINISTRY OF FINANCE
commendable!
Nothing commendable here.
Typical African mentality where you only do something when a muzungu tell you, but you ignored the same advise when a fellow black man told you.
This is one of the conditions dictated by IMF and agreed upon by our financially illiterate and very clueless misleaders.
We have sold our sovereignty for a pot of beans.
SHAME!
I thought these guys in govt remove fuel subsidies? Am I wrong or what? K1.2bn for fuel subsidy?
Reminds of one of the weekly reports one of my managers would send to my office and I would constantly ask them to be abit more analytical.
They are about to announce more borrowing.
Can we get a ministerial statement on the issue of subsidies. As far as I am concerned, fuel subsidies were removed and this is why Zambia has the highest fuel prices in the sub-region.
One concern over revenue collection by ZRA especially from SME’s… There is inefficiency in this area, a lot SMEs do not systematically return taxes not because they do not want or they have no cash, but ZRA’s system discourages them from doing so.
To start with their system is unreliable, secondly queues are unbearable for one covering 100km+ just to give them free money in Ndola, especially towards the D-day – 14th…
Please Ba Minister and your senior officials do something about it. SMEs are capable of funding the entire national budget if only efficiency in revenue collections is upheld…
Perhaps this is one area HH wishes to make a name over i.e. if at all he’ll win forth-coming elections. Note that just 1,000 SMEs with a monthly turnover of K33,333 will be able to…
There is no incentive for them to come out of the black market…..in Zambia even a basic bank account with money in it is charged; unnecessary charges for nothing.
Contd…. Note that just 1,000 SME’s with a monthly turnover of K33,333 will be able to give the national treasury K1 billion…
We are in trouble, spending more than we collect and no one talks about cutting down on expenditure. So we have to wait for IMF to force us to cut down on our own expenditure. This government lacks common sense, you cannot live off borrowing. It is unsustainable, we also don’t want to owe everyone money.
No Fiscal discipline…they are just reckless empty tins.
This is the folly with this govt when they have a deficit they do not cut back..no the go out and obtain a bridging loan…sign of a govt leaving beyond its means. The funds from the Toll roads as well is already being misappropriated.
P F Government selling our children into DEBT SLAVERY with yet more borrowing to cover up their reckless spending and corruption!
Zambians must kick this clueless drunkard and his thieving minions out as soon as possible!
Typical UPND morons critising everything! Even when someone wants to go to the tiolet they will critisise, the ministry was trying to be transparent by giving a breakdown of the expenditure and income but you are busy disperaging them 1dots.
its commendable to give the quaterly income and expenditure breakdown.